Rupee Plunges to New Low as Oil Prices Soar Above $91
The Indian Rupee has depreciated to 95.68 against the US Dollar, marking a decline of 7 paise from its previous close. The depreciation is attributed to elevated crude oil prices and strong demand for the greenback.
Brent crude prices have risen above $91 per barrel, increasing dollar demand from oil-related transactions. This has put pressure on the Rupee, which had previously been trading at 95.61 against the US Dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the Rupee looks vulnerable to rising oil prices. He added that the Reserve Bank may be protecting the currency's value near 95.75 but will allow depreciation in view of increasing oil prices and consistent dollar demand from oil companies.